Switching to a heat pump is one of the most impactful steps UK homeowners can take to reduce energy bills and carbon emissions. The good news? In 2025, the government is offering generous grants that can cover a significant portion of the installation cost. Here’s a comprehensive guide to every funding option available right now. If you’re also exploring other ways to cut costs, our guide to the top 10 ways to reduce your energy bills is a great companion read.
Key Takeaways
- The Boiler Upgrade Scheme (BUS) offers up to \u00a37,500 towards heat pump installation
- ECO4 can fund 100% of costs for eligible low-income households
- You can combine certain grants for maximum savings
- MCS-certified installers like Enviro-Energy are required for all grant applications
The Boiler Upgrade Scheme (BUS)
The Boiler Upgrade Scheme is the UK government\u2019s flagship programme for encouraging homeowners to switch from fossil-fuel boilers to low-carbon heating systems. Originally launched in April 2022, the scheme was extended and enhanced in October 2023, increasing the grant for air source heat pumps from \u00a35,000 to \u00a37,500.
| Technology | Grant Amount | Typical Total Cost | You Pay |
|---|---|---|---|
| Air Source Heat Pump | \u00a37,500 | \u00a310,000 \u2013 \u00a315,000 | \u00a32,500 \u2013 \u00a37,500 |
| Ground Source Heat Pump | \u00a37,500 | \u00a320,000 \u2013 \u00a335,000 | \u00a312,500 \u2013 \u00a327,500 |
| Biomass Boiler | \u00a35,000 | \u00a312,000 \u2013 \u00a320,000 | \u00a37,000 \u2013 \u00a315,000 |
BUS Eligibility Criteria
- Your property must be in England or Wales
- You must be replacing an existing fossil-fuel heating system (gas, oil, LPG, or electric)
- Your property must have a valid Energy Performance Certificate (EPC) with no outstanding loft or cavity wall insulation recommendations
- The installation must be carried out by an MCS-certified installer
- New-build properties are not eligible
ECO4: Free Heat Pumps for Eligible Households
The Energy Company Obligation (ECO4) scheme is funded by the UK’s largest energy suppliers and is designed to help low-income and vulnerable households improve their home’s energy efficiency. Under ECO4, eligible homeowners can receive a fully funded heat pump installation at no cost whatsoever. For a deeper dive into the insulation side of this scheme, read our article on the ECO4 scheme extension and free insulation.
ECO4 takes a “whole-house” approach, meaning your home will be assessed and may also receive insulation upgrades alongside the heat pump to ensure maximum energy efficiency improvement.
Who Qualifies for ECO4?
Income-Based Benefits
- \u2022 Universal Credit
- \u2022 Pension Credit (Guarantee)
- \u2022 Income-based JSA or ESA
- \u2022 Income Support
- \u2022 Child Tax Credit (income < \u00a316,480)
- \u2022 Working Tax Credit
Property Requirements
- \u2022 EPC rating of D, E, F, or G
- \u2022 Owner-occupied or private rented
- \u2022 Social housing (EPC E, F, or G only)
- \u2022 Located in England, Scotland, or Wales
Can You Combine Grants?
One of the most common questions we receive is whether grants can be stacked. The short answer is: it depends. You cannot combine the BUS grant with ECO4 funding for the same heat pump installation. However, you may be able to use ECO4 for insulation improvements and then apply for BUS to cover the heat pump itself, provided both schemes\u2019 criteria are met.
Additionally, some local authorities offer their own top-up grants through the Home Upgrade Grant (HUG2) programme, which can be used alongside national schemes. Enviro-Energy\u2019s team can assess your situation and identify the best combination of funding for your property.
How to Apply: Step-by-Step
Get a Free Assessment
Contact Enviro-Energy for a no-obligation home energy assessment. We\u2019ll evaluate your property, current heating system, and EPC rating.
Eligibility Check
We\u2019ll determine which grants you qualify for and calculate the maximum funding available for your installation.
Grant Application
As an MCS-certified installer, we handle the entire grant application process on your behalf \u2014 no paperwork for you.
Professional Installation
Once approved, our qualified engineers install your heat pump, typically within 1\u20132 days. The grant is deducted directly from your invoice.
Why Act Now?
Government grant budgets are allocated on a first-come, first-served basis. The BUS scheme has a fixed budget, and once it’s gone, it’s gone. With the growing popularity of heat pumps — installations increased by 43% in 2024 — demand for grants is at an all-time high.
Additionally, the UK government’s target to phase out new gas boiler installations by 2035 means that heat pump adoption will only accelerate. Acting now ensures you benefit from the highest grant levels and avoid potential waiting lists as demand increases. Pairing a heat pump with solar PV panels can further reduce your running costs, as our ROI analysis shows. You can also see the real-world impact in our Liverpool case study, where a family cut their annual energy spend by £1,200.
Ready to Claim Your Heat Pump Grant?
Our team will check your eligibility, handle the paperwork, and install your heat pump \u2014 all with zero hassle. Call us free on 0800 689 4105 or request a callback.